Published by Global Banking & Finance Review®
Posted on February 5, 2026
1 min readLast updated: February 5, 2026
Add as preferred source on GoogleBritish firms' wage growth expectations have slightly decreased, with the Bank of England survey showing a drop to 3.6% in January.
LONDON, Feb 5 (Reuters) - British companies' expectations for wage growth in the year ahead cooled a bit in the three months to January and expectations for their prices also declined, a Bank of England survey showed on Thursday.
Expected year-ahead wage growth dropped by 0.1 percentage point to 3.6% on a three-month moving-average basis in January.
Companies' expectations for their own price inflation in the coming 12 months also inched down slightly, falling by 0.1 percentage points to 3.5% in the three months to January.
The central bank, which held interest rates at 3.75% on Thursday, is closely monitoring wage growth as it tries to gauge how much inflation pressure remains in the British economy and considers when to resume cutting interest rates.
(Reporting by Suban Abdulla; editing by Andy Bruce)
Wage growth refers to the increase in the average pay of workers over time, often measured as a percentage increase in wages.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
The Bank of England is the central bank of the United Kingdom, responsible for monetary policy and maintaining financial stability.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the amount borrowed or saved.
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